Cryptocurrency Q&A
What is the 5C principle of lending?
What is the 5C principle of lending?
Valentina
Thu Jan 16 2025
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7 answers
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The 5C principle of lending refers to five key factors that help financial institutions better assess the credit risk of borrowers. These factors are Character, Capacity, Capital, Conditions, and Collateral, which collectively aid in evaluating a borrower's willingness and ability to repay a loan.
7 answers
CryptoWanderer
Sat Jan 18 2025
Character refers to an individual's reputation and trustworthiness.
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BlockchainBaron
Sat Jan 18 2025
Conditions encompass the terms and circumstances under which the credit is extended, including interest rates and repayment schedules.
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CryptoGladiator
Sat Jan 18 2025
Capacity assesses one's ability to repay a loan based on income and employment stability.
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GyeongjuGloryDaysFestival
Sat Jan 18 2025
Capital evaluates the borrower's net worth and assets, serving as a gauge for their financial strength.
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CryptoKing
Sat Jan 18 2025
Credit evaluation is primarily based on five key factors.
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